economic impact of tourism in louisiana, 2018
TRANSCRIPT
Draft| Tourism Economics 3
1) Tourism is a major contributor to
Louisiana’s economy
Key facts about Louisiana’s tourism sector
Tourism spending supports 7.0% of all jobs in Louisiana
Tourism supports $1,082 in state and local taxes for every household in
Louisiana
Draft| Tourism Economics 4
2) Visitor spending generates
income, jobs, and tax revenue
Visitor spending (direct spend only) $14,972
Economic impact $22,466
Employment impact 187,355
Personal income impact $5,974
Tax impacts $3,295
Federal $1,415
State & Local $1,880
Source: Tourism Economics
Louisiana Visitor Economy 2018Dollar figures in millions
(Impacts include direct, indirect, and induced)
Introduction and definitions
| Tourism Economics 6
How visitor spending generates
employment and income
This study measures the economic impact of tourism in
the state of Louisiana. Our analysis of tourism’s impact on
Louisiana begins with actual spending by tourists, but also considers
the downstream effects of this injection of spending into the local
economy. To determine the total economic impact of tourism in
Louisiana, we input tourism spending into a model of the Louisiana
state economy created in IMPLAN. This model calculates three
distinct types of impact: direct, indirect, and induced.
Visitor spending flows through the Louisiana economy and
generates indirect benefits through supply chain and
income effects.
Travelers create direct economic value within a
discreet group of sectors (e.g. recreation,
transportation). This supports a relative proportion of
jobs, wages, taxes, and GDP within each sector.
Each directly affected sector also purchases goods and
services as inputs (e.g. food wholesalers, utilities) into
production. These impacts are called indirect impacts.
Lastly, the induced impact is generated when
employees whose wages are generated either directly
or indirectly by tourism, spend those wages in the local
economy.
The impacts on business sales, jobs, wages, and taxes are calculated
for all three levels of impact.
Business sales impacts (1 of 2)
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Louisiana visitor spending of $15 billion
translated into nearly $22.5 billion in
business sales including indirect and
induced impacts.
Direct Indirect Induced TotalAgriculture, Fishing, Mining $0.04 $0.02 $0.06
Construction and Utilities $0.42 $0.18 $0.59
Manufacturing $0.25 $0.13 $0.38
Wholesale Trade $0.14 $0.14 $0.29
Air Transport $0.08 $0.02 $0.02 $0.12
Other Transport $0.52 $0.22 $0.09 $0.83
Retail Trade $2.24 $0.06 $0.29 $2.60
Gasoline Stations $1.81 $0.01 $0.02 $1.83
Communications $0.19 $0.13 $0.33
Finance, Insurance and Real Estate $0.50 $0.92 $1.01 $2.43
Business Services $0.28 $1.12 $0.33 $1.73
Education and Health Care $0.01 $0.68 $0.69
Recreation and Entertainment $3.18 $0.13 $0.07 $3.39
Lodging $2.29 $0.01 $0.00 $2.30
Food & Beverage $3.96 $0.08 $0.29 $4.33
Personal Services $0.10 $0.12 $0.18 $0.40
Government $0.11 $0.06 $0.17
TOTAL $14.97 $3.84 $3.65 $22.47
% change 4.8% 3.0% 3.3% 4.3%
Source: Tourism Economics
Business sales impacts, billions
Business sales impacts (2 of 2)
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While the majority of sales are in industries
directly serving visitors, significant benefits
accrue in sectors like finance, insurance and
real estate from selling to tourism
businesses.
Food & Beverage
Recreation and Entertainment
Retail Trade
FIRE*
Lodging
Gasoline Stations
Business Services
Other Transport
Education and Health Care
Construction and Utilities
Personal Services
Manufacturing
Communications
Wholesale Trade
Government
Air Transport
Agriculture, Fishing, Mining
$0 $1 $2 $3 $4 $5
Direct
Indirect
Induced
Business sales impacts, 2018
Source: Tourism Economics
Dollars, billions*Finance, insurance and real estate
GDP impacts (1 of 2)
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Visitors generated $10.6 billion in state GDP (value added) in 2018 including indirect and induced benefits—4.2% of the Louisiana economy. This excludes the flow of dollars through the Louisiana economy net of import leakages.
Direct Indirect Induced Total
Agriculture, Fishing, Mining $0.02 $0.01 $0.03
Construction and Utilities $0.17 $0.07 $0.24
Manufacturing $0.08 $0.04 $0.13
Wholesale Trade $0.09 $0.09 $0.19
Air Transport $0.03 $0.01 $0.01 $0.04
Other Transport $0.27 $0.11 $0.04 $0.42
Retail Trade $0.59 $0.04 $0.20 $0.83
Gasoline Stations $0.15 $0.00 $0.01 $0.16
Communications $0.08 $0.06 $0.15
Finance, Insurance and Real Estate $0.11 $0.59 $0.62 $1.32
Business Services $0.15 $0.76 $0.21 $1.12
Education and Health Care $0.01 $0.41 $0.41
Recreation and Entertainment $1.63 $0.07 $0.04 $1.74
Lodging $1.51 $0.01 $0.00 $1.52
Food & Beverage $1.77 $0.04 $0.16 $1.98
Personal Services $0.05 $0.08 $0.10 $0.23
Government $0.06 $0.03 $0.08
TOTAL $6.26 $2.22 $2.12 $10.60
% change 3.2% 5.5% 4.3% 3.9%
Source: Tourism Economics
Value added impacts, billions
GDP impacts (2 of 2)
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The restaurant industry has the largest
economic contribution from traveler
spending, followed closely by recreation.
Food & Beverage
Recreation and Entertainment
Lodging
FIRE*
Business Services
Retail Trade
Other Transport
Education and Health Care
Construction and Utilities
Personal Services
Wholesale Trade
Gasoline Stations
Communications
Manufacturing
Government
Air Transport
Agriculture, Fishing, Mining
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5Dollars, billions
Direct
Indirect
Induced
Value added impacts by industry, 2018
Source: Tourism Economics
*Finance, Insurance and Real Estate
Employment impacts (1 of 2)
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Visitor spending directly generated 134,247
jobs and 187,355 jobs when indirect and
induced impacts are considered.
Direct Indirect Induced TotalAgriculture, Fishing, Mining 276 124 400
Construction and Utilities 1,047 430 1,477
Manufacturing 479 189 667
Wholesale Trade 558 565 1,123
Air Transport 176 41 42 259
Other Transport 4,965 1,481 619 7,065
Retail Trade 13,044 727 3,343 17,114
Gasoline Stations 3,061 73 236 3,371
Communications 670 338 1,008
Finance, Insurance and Real Estate 615 4,816 2,658 8,089
Business Services 1,215 9,888 3,026 14,130
Education and Health Care 223 7,266 7,490
Recreation and Entertainment 33,702 2,144 817 36,663
Lodging 21,287 68 32 21,387
Food & Beverage 53,730 1,517 4,639 59,887
Personal Services 2,451 1,264 2,544 6,259
Government 659 307 966
TOTAL 134,247 25,931 27,176 187,355
% change 0.7% 0.4% 0.4% 0.6%
Source: Tourism Economics
Employment Impacts
Employment impacts (2 of 2)
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The total employment impact of just over
187,000 jobs accounts for 7% of all jobs in
the state of Louisiana.
Food & Beverage
Recreation and Entertainment
Lodging
Retail Trade
Business Services
FIRE*
Education and Health Care
Other Transport
Personal Services
Gasoline Stations
Construction and Utilities
Wholesale Trade
Communications
Government
Manufacturing
Agriculture, Fishing, Mining
Air Transport
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000
Direct
Indirect
Induced
Employment impacts by industry, 2018
Source: Tourism Economics
Jobs*Finance, insurance and real estate
Personal income impacts (1 of 2)
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Visitors generated nearly $3.6 billion in
direct personal income and nearly $6 billion
including indirect and induced impacts.
Direct Indirect Induced TotalAgriculture, Fishing, Mining $0.02 $0.01 $0.02
Construction and Utilities $0.09 $0.04 $0.12
Manufacturing $0.03 $0.01 $0.04
Wholesale Trade $0.04 $0.05 $0.09
Air Transport $0.02 $0.00 $0.00 $0.02
Other Transport $0.21 $0.08 $0.03 $0.33
Retail Trade $0.33 $0.02 $0.11 $0.46
Gasoline Stations $0.12 $0.00 $0.01 $0.13
Communications $0.04 $0.02 $0.06
Finance, Insurance and Real Estate $0.05 $0.16 $0.10 $0.31
Business Services $0.07 $0.51 $0.15 $0.74
Education and Health Care $0.00 $0.37 $0.38
Recreation and Entertainment $0.84 $0.04 $0.02 $0.90
Lodging $0.71 $0.00 $0.00 $0.72
Food & Beverage $1.21 $0.04 $0.11 $1.36
Personal Services $0.06 $0.06 $0.09 $0.21
Government $0.05 $0.02 $0.08
TOTAL $3.62 $1.20 $1.15 $5.97
% change 4.0% 2.5% 2.9% 3.4%
Source: Tourism Economics
Personal income impacts, billions
Personal income impacts (2 of 2)
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Food & Beverage
Recreation and Entertainment
Business Services
Lodging
Retail Trade
Education and Health Care
Other Transport
FIRE*
Personal Services
Gasoline Stations
Construction and Utilities
Wholesale Trade
Government
Communications
Manufacturing
Agriculture, Fishing, Mining
Air Transport
$0.0 $0.5 $1.0 $1.5Dollars, billions
Direct
Indirect
Induced
Personal income impacts by industry, 2018
Source: Tourism Economics
*Finance, insurance and real estate
Tax impacts
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Visitors generated state and local taxes of
nearly $1.9 billion in 2018.
Visitors generated $3.3 billion in
federal, state, and local taxes in
2018.
Each household in Louisiana
would need to be taxed an
additional $1,082 per year to
replace the state and local taxes
generated by visitors.
Direct Indirect/Induced Total
Federal $0.86 $0.56 $1.41
Personal Income $0.25 $0.17 $0.42
Corporate $0.12 $0.12 $0.24
Indirect business $0.13 $0.04 $0.17
Social insurance $0.36 $0.23 $0.59
State and Local $1.54 $0.34 $1.88
Sales $0.97 $0.18 $1.15
Bed Tax $0.17 $0.00 $0.17
Personal Income $0.05 $0.03 $0.08
Corporate $0.01 $0.01 $0.01
Social insurance $0.01 $0.00 $0.01
Excise and Fees $0.11 $0.04 $0.14
Property $0.24 $0.08 $0.32
Total $2.40 $0.89 $3.29
% change 4.1% 1.8% 3.5%
Source: Tourism Economics
Tourism supported tax revenue, billions
The tourism sector is a major
contributor to Louisiana’s economy
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If all employees sustained by tourism were
unemployed, the unemployment rate would
jump to 11.3% from just 4.9%.
5.0%
2.5%
1.0%
0.8%
1.0%
0.8%
0% 2% 4% 6% 8%
Employment
Income
Direct Indirect Induced
Share of total Louisiana employment and income supported by tourism
Percent of state totalSource: Tourism Economics; BEA
7.0% of total state employment
4.2% of total state wages
Figures in context
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The $1,082 each household would
have to pay to replace state and
local taxes generated by tourism is
enough to buy 24 St. Louis
Cemetery Tour tickets.
The nearly $6 billion in total wages
generated by tourism is the
equivalent of about $3,400 for
every household in Louisiana.
The total number of jobs in support
of tourism (187,355) is 1.8 times
the capacity of Tiger Stadium,
home of the LSU Tigers.Employment Income
Taxes
About Tourism Economics
| Tourism Economics 19
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